Let Coach decide -
quite the same as Coach picks from depth chart except the coach choses from max.12 players dressed for the match and distributes them among all five positions. Players don't stick to these positions as much as in other previously mentioned options and subbing can be more varied and players can fluctuate through lineup as game continues.
I can't tell how much coach respect any assignments of player to particular positions, to starting job etc. because I see no sense in any assignements in this option. If I have to have control over who should share minutes in this or that position it is better to use Coach picks from d.c. I guess it could have some influence on him but it's not wise to rely on it. Simply this is not the best option to control the minutges especially for training purposes.
Am I missing something or am I mistaken somewhere?
It's "something" like that, but not exactly. LCD gives the coach some freedom, but with limits also. I have played games with my pg playing center with LCD, and he started where I put him, even if he was NOT suitable at all for C, and the sub was WAY better than him. Then, why sometimes the coach follows your orders, even if they are extremely awkward and nonsense, and sometimes he does what he wants, even if you tell him to do at the start of the match is more logical than the other thing?? It's not that straightforward, there may be some other things.